E&OE
Jim Wilson
It’s a quarter past five. Well we knew this day was coming. The new federal government has all but scrapped the construction industry watchdog, stripping down its powers to quote, “the bare legal minimum”. Already business groups are raising the alarm bells, arguing the Australian Building and Construction Commission is a vital body to stop the lawlessness which is rife throughout the sector. But this new government is hell bent on dismantling it saying the ABCC is too politically motivated. Now before the election, I spoke with Senator Michaelia Cash about this and the Senator is back on the line this afternoon. Senator, welcome back to the program.
Senator Cash
Great to be with you.
Jim Wilson
Well, the government’s move to dismantle the ABCC isn’t a surprise because they promised to shut it down during the election campaign. Are you worried road unions will run rampant?
Senator Cash
Absolutely, and the feeling within the building industry and the business community today, Jim, is one of total confusion following Tony Burke’s announcement in the media, mind you, that the ABCC, as you said will be stripped back to the bare legal minimum. I mean, Labor, yes, they promised to abolish the ABCC, but they also said they would consult with the industry. The industry quite fairly, was expecting a consultation period and an orderly transition period. Not having it rushed on like this, but quite literally announced in a media interview on Sunday. And what is worse is I understand that the ABCC itself only found out when they watched Insiders. What an absolute disgrace that is; 150 staff find out about this plan on Insiders.
Jim Wilson
Well Labor’s been dead set against the commission ever since it was created under John Howard’s Government. They say it unfairly targets some unions like the CFMMEU. Do you agree it was too politically motivated?
Senator Cash
Absolutely not. And the reason I say that is look at the statistics. The ABCC have been successful in 91% of the cases that it has brought. Now that is the courts of Australia saying, based on the evidence that the ABCC have put before them, and these cases are defended, the courts have found in favour of the ABCC. But on top of that, Jim, let’s not forget the ABCC are also able to go out and get lost wages and entitlements on behalf of employees. Why would you jeopardize that? Since 2016, they have recovered over $5 million on behalf of lost wages and entitlements. When it comes to subcontractors, in the last financial year alone, in relation to progress payments that were not being made in the last financial year alone, they have gone out there, they have taken action, and they have got over $5 million. So you tell me, are the courts of Australia, are they biased? I don’t think so. They make decisions based on evidence, and in relation to the evidence 91% of the time, the ABCC’s cases have been upheld. So would you reinstate the ABCC if you’re elected to government at the next election? Absolutely. And do you know why? The last thing we now need given COVID-19, given rising interest rates, given rising inflation, is taking us back to the chaos that we can expect in Australia’s building industry under Labor. This is an economic issue as far as I’m concerned. You know, the fifth largest industry in Australia, it contributes 8% of GDP. It employs 1.1 million Australians, and by promising to abolish the ABCC, but what is worse, literally paring the building code back with but a few hours notice, you know, Anthony Albanese is putting Australia’s economic recovery at risk. And I don’t know if you’ve seen the economic modelling that was undertaken by EY. They actually found that scrapping a specialist construction regulator will drive up inflation, just when the Reserve Bank is increasing interest rates to tackle inflation, and it will result in a reduction in economic activity by $47.5 billion by 2030. So I say to all Australians, just watch the cost of constructing this substantial pipeline of infrastructure – health, defence aged care, transport projects – it’s going to cost you more because of this action by the Albanese Government. Economic vandalism, Jim.
Jim Wilson
Good on you Senator, thank you for your time.
Senator Cash
No worries mate, thanks a lot.
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